How long does the buyer process take from start to finish?
Anywhere from 45-180 days on average. Currently our market is experience high buyer demand and low inventory. It can take some time to find the right property and get it under contract. Once you find a home, closing time is typically 30-45 days from contract acceptance.
Who pays the buyer’s agent commission?
Each agent sets the fee in which they charge for buyer representation. Typically the buyer’s agent commission is paid by the listing agent or new home builder and is not a cost to the buyer. In the rare event a commission is not being offered by the cooperating party, the buyer’s agent and buyer would work out a fee agreement.
When is the right time to make an offer?
It is very rare that someone finds a “Perfect” property. We like to say when it meets 80% of what you want/need, 10% of the things you can change, and 10% of the things you can live with is a good rule of thumb.
How much should I offer?
As your agent, we will do a market analysis on any property you are considering to see what a fair offer price would be. Currently we are seeing most offers around or above list price.
Will a seller accept an offer contingent on my house selling?
Possibly. Depending on the seller's situation and the terms of the contingency. Sellers are considering accepting contingent offers in our current market.
What is Earnest Money and how much do I need?
Earnest money is an amount you have deposited with the escrow company to show good faith to the seller you are moving forward. A typical earnest deposit is 1% of the offer price. ($200,000 offer = $2,000 Earnest Deposit) The deposit will be as soon as possible after the contract is accepted.
Will my Earnest Money be deposited?
YES. They escrow company will deposit the money into an escrow account and credit the amount to you at closing.
What if I don’t like the condition of the property?
Once the property is under contract you will have the opportunity to inspect and investigate not only the property condition, but anything that is important to you in regards to the purchase of the home. This is typically 10 days from the execution of the contract. If you are not satisfied with the condition of the property or area where the property is located, you are able to cancel the contract within the allotted time and your earnest money will be returned in full.
When should I lock in my interest rate?
Once you have a property under contract, you will want to be in contact with your lender as to when a good time would be to lock in your interest rate. Be aware that if you do not lock it in during the inspection period and the rate increases beyond what you are comfortable with your earnest deposit will be at risk if you cancel do to the interest rate.
Home Inspection vs Appraisal
Home Inspection: This is at the buyers discretion and is to evaluate the physical condition of the property. We HIGHLY recommend all buyers hire a licensed home inspector.
Appraisal: The appraisal is required by the lender to determine the value of the property. Although the appraiser will look at the condition of the home, it is only to determine value and not to determine the physical condition of the home.
All property inspections are the responsibility of the buyer. The buyer would be responsible to pay for any home inspection. The cost of the appraisal is by default a buyer cost, but could be negotiated in the contract.
How long does a property inspection take?
Most properties take 2-3 hours depending on size and age. Typically the inspector will start the inspection, the buyer and their agent will show up towards the end of the inspection to go over the results and ask any questions.
How do I get my earnest money back if I cancel during the inspection period?
You would complete a Buyer’s Inspection Notice stating your reason for cancelling the contract and submit it to the Escrow Company and Listing Agent. Once the escrow company receives the notice, they will process the cancellation and write you a check for the deposit amount, usually within 24 hours of cancellation.
Should I expect to be competing against multiple offers?
It is a possibility. We are currently in a low inventory market, so we are seeing multiple buyers interested in the same property. Especially anything under $250,000.
When will I need to have the down payment or any additional monies to escrow?
The exact amount of additional monies to close will not be known until the loan documents are sent to title and a settlement statement is created. This is happens 3 days prior to close of escrow.
Can we recommend an attorney, home inspector, lender, or home warranty company?
Yes we have recommendations, but it is always the buyer’s choice. We recommend you research the companies and services to make sure they are providing what you need.
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